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American Airlines and Labor Negotiations

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Can't possibly be positive about walking away from an industry leading contract just to keep the IAM Pension. Uncle Jerry just about fell off his chair I heard. Never see that proposal again. CLT catering, lavs, and all of the wonderful small stations are gone but not forgotten. Now, Parker will get the United Airline contract that he wanted and it will be granted to him by an arbitrator. Many more things will be gone. Many more. That buyout? It's gone. Not coming back. The union will find out next week. A lot of things are gone.

People wanted to believe Weez and his handlers that the company would just keep the same offer. Not happening!

Morons, we have morons on our team. Can't fix stupid.
Thank God I don’t believe anything weez says sounds like he got a paid position from the union
 
Not surprised Mark Grey would let loose. It really is what Parker needs to hear. The situation is so dysfunctional and worsening. Very unhealthy to have employees this unhappy and to let it go on for this long.

Yes sir! Known Mark for 10+ yrs. Have always respected that dude. Straight shooter!!! TWU needs many more like him
 
American Airlines is also reporting a big slide. Profit fell more than 48% last quarter, thanks to higher fuel costs. That’s despite rising demand. Still, the company is forecasting that earnings will remain at about $5 a share for the full year and it expects to grow revenue for each seat by more than 3%.

so, aa reiterating about $5 a share. we're at approx. 460 million shares..so, 2018 should mean $2.3 billion. we're already at $2.2 billion pre-tax profit for 2018, i believe..so, we should be higher than $2.3 billion after the 4th quarter.

here's a few things we should probably know about our company. this is from last thursday's analyst conference call:

pension contributions and overall debt

In addition, the company made $156 million contribution to its defined benefit plans. For the year, we have made $467 million in pension contributions. One benefit of the rising interest rate environment is that it reduces our pension liability, which all else being equal, will lower future pension funding obligations and improve our free cash position in the medium to long-term.

As of today, we estimate our GAAP liability has reduced by $2 billion from the start of the year and our 2019 cash contribution has reduced by about $110 million to $780 million based on year-to-date asset performance.

We have lowered our adjusted debt including pensions by $743 million since the beginning of the year. Now that our fleet renewal program is winding down, we continue to believe that our 2018 year-end adjusted debt will be lower than at the end of the third quarter and we expect that over the next few years this trend will continue as we naturally de-lever the company.

why the company didn't buy any stock back in the 3rd quarter (i was shocked) and how much money is left for stock buy-backs til 2020. the company ended the last quarter with $7.3 billion in cash.

We did not repurchase any stock during the third quarter, leaving our available authorization for stock buybacks unchanged at $1.65 billion. The fact that we did not repurchase any stock is not due to a change in our belief that the stock is undervalued.

As we have consistently said, our priorities for our use of cash are: number one, to meet our outstanding obligations when due; two, to make appropriate investments in the business; and finally, to opportunistically return any excess liquidity to shareholders.

We define excess liquidity as anything above the very high level of $7 billion. As fuel prices rose earlier this year, we began to forecast the year-end cash balance near that $7 billion target level so we stopped repurchasing our shares. We're extremely bullish on AAL and would be aggressive buyers at these levels, but maintaining $7 billion of target liquidity is a key component of our capital allocation strategy and we won't violate it to repurchase shares irrespective of our bullishness.

to me, this is key. aa gave the percentage of the fuel spike that we have recaptured. 40%. dl said 80% and ua said 90% for the 3rd quarter. this is where we're failing in 2018. parker seemed to cough at the question, but cfo kerr answered it. 40%.

David Koenig - The Associated Press

Good morning, folks. Most of my questions were asked and answered, but I did want to know. I think maybe Derek was looking for a figure when Doug was answering Helane Becker's question. Was there, first of all, ever a figure on how much fuel cost increase you are recapturing with fares and fees?


William Douglas Parker - American Airlines Group, Inc.

We don't have that number, I guess. Anyway, you can get it from analysts. Go ahead, Derek.

Derek J. Kerr - American Airlines Group, Inc.

It's 40%.

William Douglas Parker - American Airlines Group, Inc.

Yeah. 40%, thanks.

Derek J. Kerr - American Airlines Group, Inc.

Calculated the same way that Delta and United have calculated.

David Koenig - The Associated Press

40%, okay. Thank you. And on the 1.5% to 3.5% TRASM guide for 4Q, how much would that be if you took out cargo and credit card and stuff like that? How much would the PRASM part of it be?

Derek J. Kerr - American Airlines Group, Inc.

We actually just don't look at it that way. These things are all really interrelated. And so we focus on our TRASM number.

our labor issues:

Hi, good morning. I had a question just about labor in general. If you could, just give us an update on what's going on with the mechanics. You have pilot negotiations, I think, coming up soon. Also, there have been a bunch of protests with some of the regional employees too, and you gave a pay raise I think it was like a year and a half ago that you've first announced it. Is it possible to give further pay increases to your employees going forward?

William Douglas Parker - American Airlines Group, Inc.

I'll do an overview, and then Steve can fill in any blanks if there are any.

Leslie Josephs - CNBC

Thanks.

William Douglas Parker - American Airlines Group, Inc.

Thank you, Leslie. So on our fleet service and mechanics, the IAM-TWU partnership – association I should say, negotiations, as soon as those contracts became amendable, the company asked that we go to the National Mediation Board for assistance. We just haven't been able, despite everyone's best efforts, to get that contract closed up. And we think it makes sense for the National Mediation Board to bring us there to get us there.

So that's done. That we think is a very positive development. So it's now in the hands of the National Mediation Board to actually oversee those negotiations, and that will begin shortly. So hopefully that will bring us to the conclusion that we weren't able to get done with the parties themselves.

We do have, at the end of 2019, our flight attendant and pilot contracts become amendable, so we'll open those negotiation sometime in 2019. Those are five-year contracts that we've signed five years ago. So that's where it stands. All in all though, what I'll tell you is, the team is doing a great job. The leadership team has done a really nice job of taking care of our team and is making a huge difference in the way that our team is now taking care of our customers. And we're really happy with the way all that is done, and we hope to get these negotiations all completed as they come due.

Leslie Josephs - CNBC

And is it possible to get some of the workers will get an increase in pay? I know that there are some outside the mechanics and...

William Douglas Parker - American Airlines Group, Inc.

I'm sorry, are you asking about the regional carriers? Steve on the wholly-owned subsidiaries?

Leslie Josephs - CNBC

Yeah.

Stephen L. Johnson - American Airlines Group, Inc.

Sure, we have several negotiations going on with our wholly-owned subsidiaries. But the two leading ones are the negotiations with our ground employees at Envoy and Piedmont. One of those has been agreed with the union and is out for ratification now. The second of those, I would expect to be concluded as soon as the first ratifies. And there are pretty big pay increases built into those, the tentative agreement for the first and what we have on the table for the second.


Leslie Josephs - CNBC

Thank you.

more management buy-outs?

Mary Schlangenstein - Bloomberg LP

Thank you. And, Elise, on the buyouts or whatever you all are calling them, do you expect those to go below management levels? Will we see any like front-line employees at that level affected?

Elise R. Eberwein - American Airlines Group, Inc.

No, Mary. This was an exercise to go through post-integration and look at our management head count and make a reduction of roughly 5%, Derek.
 
it just shows how ignorant you are. the process does not lead to arbitration it leads to being on ice drug out until an impasse is declared then self help. Then we are free to strike and the company can impose the last offer.
i really wish you would shut up already its clear you have no idea what you are talking about.


Also, the company can REPLACE striking workers! Perfect opportunity to drain the swamp! (to coin a phrase.)
 
it just shows how ignorant you are. the process does not lead to arbitration it leads to being on ice drug out until an impasse is declared then self help. Then we are free to strike and the company can impose the last offer.
i really wish you would shut up already its clear you have no idea what you are talking about.
The iam already said that there wont be an impasse. You are incorrect about a strike.
There will never ever be an impasse since its the NMB that has the "granting" powers. Like I said, the IAM Attorney already said that most likely wont ever happen

What will happen is that the nmb will force the parties to sign for arbitration. Sito was forced to sign for arbitration 3 months ago for 12,000 other members. They got alot less.

Whatever the case, you will never ever be free to strike. Your opinion is simply not supported at all by anything. No case work. Nothing.

You Lose. Have a good day, moron!
 
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We will never actually strike (at least not for long) with the current administration in DC.
The House will more than likely go blue next month, and 2020 may go blue as well. Then, and only then, will the membership have support from DC.
 
Fleet won't strike.
Maintenance won't strike.
The government won't allow a strike.
The association is so dysfunctional and divided that not one group will support the other. Maintenance will not walk for fleet service and vice-versa because there is no unionism in our society anymore. Unions are about making money off the members. A strike will cost the union money and members may lose their jobs.
Enough of the strike jabber. It won't and never will happen.
 
Fleet won't strike.
Maintenance won't strike.
The government won't allow a strike.
The association is so dysfunctional and divided that not one group will support the other. Maintenance will not walk for fleet service and vice-versa because there is no unionism in our society anymore. Unions are about making money off the members. A strike will cost the union money and members may lose their jobs.
Enough of the strike jabber. It won't and never will happen.

Wow you have a pretty blind and bleak outlook on things don’t you.
 
Tomorrow the Association and Company meet with the Federal Mediators. It’s going to be nothing more than a glorified Meet and Greet. After that nothing happens till the end of January. 3 Months later and after the Holliday seasons pass.

The Company has “chosen” to take the position now that they refuse to meet with our Representatives unless the NMB is present. This is a choice THEY are making. The Association has been very public that they would like to continue to meet and that ask has been ignored.

So Happy Thanksgiving, Merry Christmas and Happy New Year.
 
Tomorrow the Association and Company meet with the Federal Mediators. It’s going to be nothing more than a glorified Meet and Greet. After that nothing happens till the end of January. 3 Months later and after the Holliday seasons pass.

The Company has “chosen” to take the position now that they refuse to meet with our Representatives unless the NMB is present. This is a choice THEY are making. The Association has been very public that they would like to continue to meet and that ask has been ignored.

So Happy Thanksgiving, Merry Christmas and Happy New Year.
Welcome to SWA world, good luck.
 
Welcome to SWA world, good luck.

Nah this isn’t SWA World, this is the Airline Industry and the handcuffs of being under the Railway Labor Act.

Actually after Herb left you guys over there just joined the big leagues of Management stall stall stall.

It’s all about them holding on to the accumulated small dollars as long as they can. (The interest)

Like I’ve said before. We’re all going to get the retro check on the wages and OT but just think about all that lost compounding interest we could have had in our financial accounts, particularly our retirements.

Company is going to keep our 401k match losses, Holliday’s, Sick Time, Etc.
 
Tomorrow the Association and Company meet with the Federal Mediators. It’s going to be nothing more than a glorified Meet and Greet. After that nothing happens till the end of January. 3 Months later and after the Holliday seasons pass.

The Company has “chosen” to take the position now that they refuse to meet with our Representatives unless the NMB is present. This is a choice THEY are making. The Association has been very public that they would like to continue to meet and that ask has been ignored.

So Happy Thanksgiving, Merry Christmas and Happy New Year.
Why on earth would they want to meet with your boy Sito who has already made it clear that he wont attach retirement to scope?
We are stuck with an arbitrator decision in 3 years and we will get alot less. You dont understand.
 
W I stated long time ago that mr baskett case, his fat friend and most of these IAMers are nothing but IGMers. Im glad to see you finally waking up. Instead of organizing Fll for those clowns why not organize MIA for your own guys. Start a grass roots effort amongst the members in MIA to petition the nmb to escort the IAM off the property. It catches fire in Mia and Dfw and the rest would be history. You'd become an instant hero and you'd prbly even get your coveted union spot you've been after. And who knows maybe even you and nyc will become buddies lol
its coming
 
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